Interconnection Issues

PEAC Workshop on DR
for TVA Distributors

September 10, 2002
Knoxville, TN
Presented by E.J. Honton
Resource Dynamics Corporation
DR Interconnection Issues:
Standards, Technologies and Impacts on
the Business Deal
8605 Westwood Center Drive
Vienna, Virginia 22182
541-462-3118 | ejh@or.rdcnet.com
Copyright 2002 Resource Dynamics Corporation
PEACs Workshop on DR for TVA Distributors
Knoxville, TN
September 10, 2002 2
Outline
DR market
DR interconnection systems
interconnection codes and standards
interconnection schematics
interconnection capabilities and products
Interconnection costs and RD&D needs
key solution: a Universal Interconnection Technology
evolving interconnection systems
What to expect, conclusions
Knoxville, TN
What are Distributed Resources (DR)?
Small power generating units and storage devices close to
load, under 50 MW, most of output used by host facility
Includes:
Combined Heat and Power (CHP)
backup power
niche applications such as premium power, peak shaving, and
green power
Knoxville, TN
Whats the DR
Market Opportunity?
Facilities use DR to generate power on-site in lieu of grid
purchases
Cutting energy costs is a primary motivation, but boosting
reliability and quality of power is also a driver
Currently, U.S. manufacturers ship over $3 billion annually in
DR worldwide, mostly diesel gensets for backup power
Rough market estimates based on emergence of improved
DR units call for $5-10 billion annually in U.S. markets alone
(equipment and installation)
Service market could be substantial at $1-2 billion annually
Knoxville, TN
U.S. DR Interconnection Systems
Market is Potentially Great in Size
Engines and Combustion Turbines > 100 kW in size
engines (184,000 units; 87,000 MW)
turbines (3,000 units; 58,000 MW)
Microturbines < 100 kW in size for premium power,
peak shaving, backup, power export
1,200 units; 40 MW
Fuel cell systems used for prime power
200 units; 40 MW
It is important to not ignore options for interconnecting
the many existing small emergency generators
Knoxville, TN
How to Achieve
Market Potential
Emerging technologies must mature and proven
options need improvement
Grid needs to be DR ready
interconnection technology issues need resolution
EPS/DR interactions must be encouraged
backup power
sales to grid/net metering
T&D system deferral value
Market should value non-energy benefits of DR
Cogenerating DR > 1 MW
0
20
40
60
80
100
120
1950 1960 1970 1980 1990 2000
Year Placed in Service
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Thermal Output Electric Generation
Knoxville, TN
FERC Advanced Notice
of Proposed Rulemaking
Standardization of small generator interconnection agreements and
procedures
issued August 16, 2002; comments until November 4
applicable to all public utilities that own, operate or control transmission
facilities under the Federal Power Act; or operate in a FERC regulated
market
Simplified procedures and agreements for quick, inexpensive and
simple interconnection for < 2 MW DR
based on Texas and PJM models
if meet P1547 and size of circuit rules, then presumption of approval of
the interconnection without additional testing, fees, or other
requirements
Expedited interconnection rules and procedures for 2-20 MW DR
www.ferc.fed.us/electric/gen_inter/small_gen/RM02-12-000.pdf
Knoxville, TN
The Interconnection System
The interconnection system
performs the functions necessary to
maintain the safety, power quality,
and reliability of connected EPSs
and DRs
System complexity depends on the
level of interaction required
between the DR and the EPS
Knoxville, TN
Why Interconnect?
The users wants the ability to use both the DR and grid,
sometimes simultaneously
Utilities may want the ability to remotely dispatch a
customers DR unit - the power export option
User needs grid for backup, standby
Knoxville, TN
Interconnection is Not a
Simple Issue: Utility Concerns
Electric power distribution systems designed for one-
way operation
Personnel safety and grid stability are dominant
concerns
Utilities reluctant to rely on unfamiliar, customer-
supplied protective relaying schemes
Integrated interconnection packages not generally
accepted and known
Knoxville, TN
Interconnection is Not a
Simple Issue: Customer Concerns
Utility interconnection costs can be a deal breaker
for smaller-sized projects
Some requirements not understood by customer, and
may appear unreasonable
Manufacturer, customer and utility DR activities are
frequently not coordinated
Interconnection requirements are far from standard
Knoxville, TN
DR
DR
DR
DR
DR
DR Can Interconnect in Several Places
Requiring Dispatch and Control
Equipment at Varying Voltages
Complexity also varies by whether a single or
multiple gensets are being interconnected
Knoxville, TN
September 10, 2002
Knoxville, TN
Many DR Sizes are Being Interconnected
CA Interconnection Requests Nov 2000 - May 2002
0
10
20
30
40
50
60
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Knoxville, TN
The Interconnection System
- Why is it Important?
Understanding the interconnection "black box" market
is important to understanding the future role of and
barriers to DR
The interconnection package is advancing quickly, with
functional performance available today that was not
possible even 1 year ago
The convergence of software and hardware is
providing protection relaying and coordination functions
at lower cost and at higher reliability
Knoxville, TN
DR Interconnection Technology
Development at a Crossroads
Digital, multi-function relays emerging
Rise of inverter technology opened door to inverter-
based protective relaying
Utility protection and coordination practices have been
based on discrete relays on the utility side of meter
Utility protection engineers are now learning and
becoming familiar with digital circuitry
Technology development is now coupled with electronic
information age
Knoxville, TN
Interconnection Black Box
The Black Box is often more than one box
The interconnection black box provides a
combination of functions including power conversion,
performance monitoring, protective relaying, and
generator control and protection
Seamless power transfer increases complexity with
greater dependence on sub-cycle transfer capability
Knoxville, TN
DR - EPS Grid Interconnection Options
No Interconnection - Complete Isolated Operation
Isolated DR - Automatic Transfer to EPS
Parallel DR Operation - No Power Export
Parallel DR Operation with Power Export
Knoxville, TN
DR Application Benefits Increase With
Interconnection
But individuality of Black Box
interconnection design, permitting,
installation, testing and operation
increases costs
No
Interconnection
Isolated DER
Operation With
Automatic Transfer
To Area EPS
Parallel Operation
To Area EPS, No
Power Export
Parallel Operation
To Area EPS,
Power Export To
Area EPS
Baseload
Cogeneration
Peak Shaving
Emergency/Backup
Premium
Remote
Knoxville, TN
Interconnection Codes and Standards
Three organizations are major players in the DR interconnection
codes and standards arena
Institute of Electrical and Electronics Engineers (IEEE)
National Fire Protection Association/NEC (NFPA)
Underwriters Laboratories (UL)
Others also issue standards and regulations
International Electrotechnical Commission (IEC)
American National Standards Institute (ANSI)
American Society of Mechanical Engineers (ASME)
American Gas Association (AGA)
Gas Technology Institute (GTI)
National Electrical Manufacturers Association (NEMA)
Electrical Generating Systems Association (EGSA)
Federal, State and Local Governments
Knoxville, TN
Coverage of Standards
Codes and standards set requirements for DR
interconnection equipment manufacture, installation,
and operation
Codes and standards primarily address reliability,
safety and power quality issues
Most standards apply to components
Limited coverage of interconnection systems
IEEE P1547
UL 1741
Certification for grid interconnection is a huge gap
BODY OF STANDARDS
P1547 Standard for Interconnecting Distributed Resources with Electric Power Systems.
P1589 Standard for
Conformance Test
Procedures for
Equipment
Interconnecting
Distributed Resources
with Electric Power
System
(Lab Certification)
P1608
Application Guide
for IEEE 1547
Standard for
Interconnecting DR
with EPSs (Tips
and Tricks)
Guide for Network
Interconnection
Guide for Grid/DR
Impacts
Determination
Guide for
Islanding &
Anti-Islanding
DR Specifications and
Performance
Interconnection
System
Certification
Guide
P1614
Guide for
Monitoring, Information
Exchange
and Control of DR
Interconnected with
EPSs.
(Communications)
Knoxville, TN
Generic Interconnection System
DER
(prime movers,
generators,
storage)
DER Electric
Generator
Power
Conversion
Local EPS
Protective
Relaying
Area EPS
Protective
Relaying
Interconnection System
Transfer
Switch or
Paralleling
Switchgear
AC
Loads
Area Electric
Power System
(Grid)
Power
Distribution
Power Flow
Communication
P
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C
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g
Meter
DG Monitoring
and Metering
Dispatch
and Control
DG Control
DC
Loads
Knoxville, TN
Differentiating Interconnection
Systems
Does the system use an inverter?
Does the system have a parallel connection to the EPS?
Can the system export power to the EPS?
Is the system remotely dispatchable?
Application type (and owner/operator), e.g., baseload,
cogeneration, emergency/backup, premium, remote?
Knoxville, TN
Todays Most Common Interconnection
Black Box
DER Prime
Mover
DER Electric
Generator
Area EPS
Protective
Relaying
Interc onnection System
Automatic
Transfer
Switc h
AC
Loads
Area Electric
Powe r Syste m
Powe r
Distribution
Power Flow
Communication
P
o
i
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t
o
f
C
o
m
m
o
n

C
o
u
p
l
i
n
g
Meter
DER Control
DC
Loads
Reciprocating Engine/Combustion Turbine Used for Emergency/Backup
Knoxville, TN
Alternative Configurations Require
Different Black Box Components
DER Prime
Mover
DER Electric
Generator
Powe r
Conversion
Local EPS
Protective
Rela ying
Area EPS
Protective
Relaying
Transfer
Switch or
Para lleling
Switchgear
AC
Loads
Area Electric
Power Syste m
UPS with
Storage
Power
Distribution
Powe r Flow
Communication
P
o
i
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t
o
f
C
o
m
m
o
n

C
o
u
p
l
i
n
g
Meter
DER Control
DC
Loads
Reciprocating Engine/Combustion Turbine Used for Premium Power
Knoxville, TN
Microturbine Used for Prime Power, as a
Peaking Unit, For Backup or Power Export
DER Prime
Mover
DER Electric
Generator
AC
Loads
Area Electric
Power Syste m
Powe r
Distribution
Power Flow
P
o
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n
t
o
f
C
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C
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p
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g
Meter
DC
Loads
Powe r Conversion that Includes:
Synchronization for Paralleling Oper ation
Local EPS and Area EPS Protective Relaying
DER Control and Monitoring
Dispatch and Control
Knoxville, TN
Small PV System with Net Metering
DER Prime
Mover
Power Conversion that Includes:
Undervoltage /Ove rvoltage
Under Frequency/Overfrequency
Overcurrent
Synchronization
Ground Fault Overvoltage
Active-Anti Island Function
Interc onnection Syste m
AC
Loads
Power
Distribution
P
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Net
Meter
DC
Loads
Power Flow
Area Electric
Power System
Knoxville, TN
Interconnection Capabilities
Exciter control system for generators
Synchronizer to transfer power DR EPS
Automatic transfer switch control
Import/export control
Protective relay functions
over/under frequency and voltage
directional real and reactive power flow
phase-to-phase current balance
Metering or net metering
Remote communications capabilities
These may or may
not be modular
components
Knoxville, TN
Genset Control
System Components
1. Genset controls, e.g. governor control and voltage regulation
2. Man-machine interface at the genset, control room near the
genset, and remote sites
3. Communications interface to the controllers, hardware and
operating system software for the control system
4. Power management software that manages the gensets in
relation to the grid as well as the protective relay functions
5. Monitoring and metering module
A key issue is whether to include interconnection
capabilities within the genset controls or in the black box
Knoxville, TN
Categories of Interconnection
Equipment Product Offerings
1. Transfer switches
2. Paralleling switchgear
3. Dispatch, communication, and control
4. DR controls
5. Power conversion
6. Metering and monitoring
7. Relays and protective relaying
Most genset control system components could be and
sometimes are built into an interconnection system
Knoxville, TN
Many Companies Make Interconnection
System Components
Transfer Switches: ABB, ASCO, Capstone, Caterpillar,
Cummins, Cutler-Hammer, Cyberex, Danaher, Generac, GE
Zenith, Inverpower, Kohler, L-3 Communications, PDI, S&C,
Siemens, Silicon Power, Thomson Technology
Paralleling Switchgear: ABB, Alpha Power, Cummins, Cutler-
Hammer, Encorp, Enercon, Generac, GE Zenith, Integrated
Power, Kohler,Mitsubishi, PACS Industries, Siemens, Square D,
Thomson Technology, Toshiba, ZTR Control
Dispatch, Communication and Control: ABB, AeroVironment,
Alpha Power, ASCO, Capstone, Caterpillar, Encorp, Enercon,
GE Zenith, Hydrogenics, Invensys, Mitsubishi, Power
Measurement, Siemens, Silicon Energy, Toshiba
Knoxville, TN
Companies (continued)
DR Controls: ABB, AeroVironment, Alpha Power,
ASCO, Basler, Beckwith, Capstone, Caterpillar, Cummins,
Detroit Diesel, Encorp, Enercon, Generac, Hatch & Kirk,
Ingersoll-Rand, Integrated Power Solutions, Invensys,
Kohler, Petrotech, Solectria, Sonat Power Systems,
Thomson Technology, Toshiba, Waukesha, Woodward,
ZTR Control Systems
Power Conversion (including Inverters): ABB,
Advanced Energy, Cherokee Electronics, Exceltech, GE
Zenith, Inverpower, L-3 Communications, Magnetek,
Mitsubishi, Nova Electric, Philtek, S&C, Siemens, SMA
America, Solectria, Solidstate Controls, Toshiba, Tumbler
Technologies, Vanner, Xantrex, Woodward
Knoxville, TN
Companies (continued)
Metering and Monitoring: ABB, Advanced Energy, Alpha
Power, Ametek Power Instruments, ASCO, Basler, Beckwith,
Capstone, Caterpillar, Cutler-Hammer, Electro Industries,
Encorp, Enetics, Generac, GE Zenith, Heliotronics, Hydrogenics,
Invensys, L-3 Communications, Liebert, Measurlogic,
Omnimetrix, PDI, Power Measurement, Reliable Power Meters,
Siemens, Simpson, Square D, Thermo Westronics, Toshiba,
Vanner, Woodward, ZTR Control
Relays and Protective Relaying: ABB, Basler, Beckwith,
Capstone, Cutler-Hammer, Encorp, GE Zenith, Schweitzer
Engineering Labs, Siemens, Square D, Toshiba, ZTR Control
All companies are not designing their architecture to the same
standards; not all equipment can work with other components
Knoxville, TN
Protection Equipment
81 O/U
3PH 59
3PH 27
47
59N
51G
50/51
50/51G
Power Monitoring
Equipment
3PH
All power
parameters incl kwH
kVA hr etc and
harmonics
Modbus Output
Typically not
Revenue grade, but
might be
Typical Mid Size Interconnection System
(4160V, 5.6MW on 35kV radial feeder)
Example GE Zenith console
Knoxville, TN
DR Interconnection Standardization
Current approach
various engineering designs
collection of individual components
EPS practices dominate today
Promised benefits from
standardization
integration
interoperability
Knoxville, TN
Typical DR Siting Costs
Siting costs vary greatly by project size, location, complexity
and the role of outside parties
Individual site specific interconnection packages increase
cost of equipment as well
Typical Costs per kW
Cost Category DR Units <500 kW DR Units >500 kW
Genset capital cost $600-1,500 $400-1,200
Engineering, permitting, installation $200-700 $150-600
Interconnection and testing $75-300 $25-200
Knoxville, TN
Static Transfer Switch
(Digital, Inverter Based) Pricing, $/kW
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
0 50 100 150 200 250
kW
$
/
k
W
Note: Price includes a power distribution unit (PDU)
Knoxville, TN
Automatic Transfer Switch Pricing, $/kW
$0
$10
$20
$30
$40
$50
$60
$70
$80
0 50 100 150 200 250 300
kW
$
/

k
W
A key issue is having flexibility to scale to different power levels
Knoxville, TN
Manual Transfer Switch Pricing, $/kW
$0
$50
$100
$150
$200
$250
0 10 20 30 40 50 60
kW
$
/
k
w
Price does not vary appreciably with kW rating
Knoxville, TN
Inverter Pricing, $/kW
Inverters often work with smaller DR generators (PV, fuel cells)
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
0 1 2 3 4 5 6
kW
$
/
k
W
Knoxville, TN
U.S. Interconnected Systems
Duration of Interconnection
Continuous
Type of Interconnection System
Momentary
(<100ms)
Extended
(30 min - 12 hours)
Short
(1 min - 5 min)
Closed Transition
Static
Transfer Switch
Softload
Automatic
Transfer Switch
Softload
Paralleling
Switchgear
Peak Shave
Paralleling
Switchgear
Baseload
Paralleling
Switchgear
Customer Interest
Power Quality
Power Reliability
Power Reliability
Rate Abatement
Power Producer
Thousands of Installations
Hundreds of Installations (>250)
Hundreds of Installations (>250)
Over 100 hundred installations
25 - 50 installations
COST
N
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r

o
f

i
n
s
t
a
l
l
a
t
i
o
n
s
Knoxville, TN
Cutting Edge Technology
Developments are Needed
Successful integration of all DR technologies into EPS
Standards and market requirements must be achievable by
the technology
Increasingly need seamless transfer of power
Must build in design flexibility - modularity?
Increasingly complex control systems, paralleling switch
gear, and transfer switches are needed for a smart system
Much technology exists, and even as incremental technical
improvements are made, most RD&D efforts are designed to
improve system economics
Knoxville, TN
Proposed RD&D Efforts
Defining a single communications protocol (grid to chip)
Transforming the interconnection system into a set of plug-and-play
components
Turning the black box into a distributed metering and monitoring
station of a smart EPS
Developing more flexible, adaptive, cheaper, and reliable control
systems using digital processors/telemetry to perform enhanced
metering, logging and dispatch
Using interconnection control and monitoring systems to improve
DR environmental performance, as well as unit predictive and
scheduled maintenance
Knoxville, TN
Key Solution: A Universal
Interconnection Technology (UIT)
Defines a standard
architecture for
interconnection system
functions
Supports basic and
optional functions and
features
Modularity, flexibility
Makes DR installations
cheaper
quicker
more reliable
Provide benefits to
distribution companies,
e.g. easier testability of
DR
Knoxville, TN
Two Types of Interconnection Systems
Are Evolving
Traditional non-inverter based pre-
engineered systems that allow for
synchronization and parallel
operation with the grid
(switchgear)
Inverter based systems for prime
movers with DC or high frequency
AC output (i.e. PV systems and
fuel cells)
Knoxville, TN
Traditional Non-Inverter
Based Switchgear
Pre-engineered structures that
contain the functions necessary
for synchronization and parallel
operation with the grid:
operator interface
controls
protective relays
circuit breakers
synchronization
Generally used for DR units with
more traditional AC output
UTILITY
INCOMING
PTS OPTIONAL
IPR
CT
52U
52G
LOAD
CT
GEN
PTS
GPC
Switchgear Single Line
Diagram (Kohler PD-100)
Knoxville, TN
Inverter Based Systems
Designed for use with prime movers
with DC or high frequency AC output
(i.e. PV systems, fuel cells, and
microturbines)
In the future, inverter based
interconnection systems may be
applied to standard reciprocating
engine gensets
Knoxville, TN
Example Inverter Based Modular
Building Blocks
Utility Line
Load
(customer)
Control, Communication, &
Metering
Communication I/O
Inverter Module
+ -
DC-DC Converter
Module
Output Interface Module
Control &
Communication
Module
Energy
Source
Knoxville, TN
Reciprocating Engine
Inverter-based System
Benefits
higher efficiency, lower emissions at part-load
better power quality
Honda EU3000is (3 kW)
200 volts at 14-17 Hz
rectified to 12 volts
inverted
Knoxville, TN
Some Currently
Available Interconnection Systems
Company Unit Inverter
Non-
Inverter
Electrical
Specification
MM-5000 Grid-Connected MultiMode
Power Conversion System
X 5 kVA Advanced Energy
Systems
GC-1000 1kW Grid-Connected
Photovoltaic Inverter
X 1 kVA
AstroPower SunChoice Program X 8.5 kVA
Ballard EcoStar Power Converter X Up to 110 kVA
Cummins Power
Generation
PowerCommand Digital Paralleling
Equipment
X Up to 2,500 kVA
Detroit Diesel Spectrum SD-100 X Up to 2,400 kVA
Encorp enpower-GPC powered paralleling
switchgear
X 800-5000 amp
Fire Wind and Rain
Technologies, LLC
Power Streak Inverter X 5kVA
Kohler PD-100 Switchgear X Up to 2,500 kVA
Thomson Technology Distributed Generation Switchgear
System/ GCS 2000-DG System
X Up to 4,000 amp
Vanner Incorprated RE Series Inverters X 5.6 kVA
Xantrex Grid Tie Inverters X Up to 125 kVA
ZTR/Shallbetter DGX Switchgear X Up to 4000 amp
Knoxville, TN
Kohler PD-100 Switchgear
20-2,000 kW 800-4,000 amps
New units and retrofits
1/3 the size of typical switchgear
Modes of operation
ATS (closed, open, or soft load)
interruptible rate
peak shaving
export to utility
Uses Encorp controller
Knoxville, TN
Ballard Ecostar
Power Converter
10 kW - 1 MW size range
Variety of prime movers
Modes of operation
grid mode and stand-alone mode operation
grid mode and stand-alone mode transition
stand-alone mode to grid mode transition
standby generator start/stop, remote wake-up, standby function
multi-unit capability up to 1 MW for grid and stand-alone operation
reliable synchronization to the grid
remote monitoring/controls/dispatch
Knoxville, TN
Business Strategies
T&D upgrade deferral
CHP with utility supplying equipment, technical know how
Peak shaving by owning or leasing DR at industrial site
Price incentives to interconnect customer DR (low base rate and high
excessive use charge) for peak shaving
Price incentives for curtailment programs
Smart interconnection system (satellite or internet) that feeds back
health of the T&D system
Invest limited amounts in multiple DR technologies
Customer reliability enhancer (no interconnection)
Short- and medium-term efficiency and operation gains; long-term
technology development
Automotive tie-ins for hydrogen infrastructure, then fuel cells
Knoxville, TN
What to Expect Next?
Evolving regulations, technologies and market adoption of DR
Utilities remain uncertain of impact on their T&D operations
Standardized interconnection may not apply universally
Improved manufacturer interconnection packages - lower cost
and improved performance
Accelerated activity at state and federal levels regarding
interconnection, with reference to IEEE standard
Knoxville, TN
Conclusions
Both the existing conversion and new technology DR markets
are potentially large
DR interconnection systems exist, but are expensive
Interconnection codes and standards are being developed
The choice of interconnection components and the installation
cost depend upon the DR application
Many manufacturers make products, but not all are modular
nor do they all work together
Further RD&D is needed to lower costs
A modular UIT may be forthcoming
Distributors may be able to benefit from DR in several ways
Knoxville, TN
For More Information
E.J. Honton, Director, Resource Dynamics Corporation,
2046 NW Flanders, Suite 24, Portland, OR 97209, 541-
462-3118, ejh@or.rdcnet.com
N. Richard Friedman, CEO, Resource Dynamics
Corporation, 8605 Westwood Center Drive, Suite 410,
Vienna, VA 22182, 703-356-1300 ext. 203,
nrf@rdcnet.com
www.rdcnet.com and www.distributed-generation.com

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PEAC Workshop on DR

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